USD/JPY continues to move sideways above 108, ignores US data ahead of Fed


  • Housing starts and building permits in the US rose more than expected.
  • Trump said he instructed Secretary of Treasury to increase sanctions on Iran.
  • US Dollar Index stays calm below 98.50 ahead of the Fed's policy announcements.

The USD/JPY pair trades in a very tight range above the 108 handle for the second straight day on Wednesday as investors refrain from making large bets while waiting for the Federal Open Market Committee (FOMC) to announce its monetary policy decisions later today. As of writing, the pair was up 0.07% on the day at 108.20.

Markets ignore the US data ahead of FOMC

Earlier today, the data published by the US Census Bureau showed that housing starts and building permits rose 12.3% and 7.7%, respectively, but failed to trigger a market reaction. At the moment, the US Dollar Index continues to move sideways near 98.40.

Previewing the FOMC's September meeting, "We now expect the Fed to cut the FFTR by another 25bps in the 17/18 Sep 2019 FOMC," United Overseas Bank analysts.

"We also project two more 25bps “insurance” rate cuts in the 29/30 Oct and the 10/11 Dec FOMC, bringing the upper bound of the FFTR lower to 1.5%, well below the 2% inflation target."

FOMC Preview: What 13 major banks are expecting from September meeting?

Meanwhile, US President Donald Trump today announced that he instructed the Secretary of Treasury Steve Mnuchin to increase sanctions on Iran as a response to the attack on Saudi Arabia's oil facilities. Nevertheless, these comments had little to no impact on the market sentiment and the 10-year US Treasury bond yield is down 1.5% on the day while Wall Street's main indexes are posting modest losses in the early trade.

Technical levels to watch for

USD/JPY

Overview
Today last price 108.18
Today Daily Change 0.07
Today Daily Change % 0.06
Today daily open 108.11
 
Trends
Daily SMA20 106.83
Daily SMA50 107.12
Daily SMA100 108.05
Daily SMA200 109.38
Levels
Previous Daily High 108.37
Previous Daily Low 108.02
Previous Weekly High 108.26
Previous Weekly Low 106.76
Previous Monthly High 109.32
Previous Monthly Low 104.45
Daily Fibonacci 38.2% 108.16
Daily Fibonacci 61.8% 108.24
Daily Pivot Point S1 107.97
Daily Pivot Point S2 107.82
Daily Pivot Point S3 107.62
Daily Pivot Point R1 108.32
Daily Pivot Point R2 108.52
Daily Pivot Point R3 108.67

 

 

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!


Latest Forex News

Editors’ Picks

EUR/USD pressured around 1.13 after jump in US jobs

EUR/USD is trading around 1.13, down after US Non-Farm Payrolls shocked with a leap of 2.5 million jobs in May, contrary to all projections. The greenback is gaining while stocks are falling, a correlation breakdown. ECB stimulus previously supported the euro.

EUR/USD News

GBP/USD retreats from highs

GBP/USD is trading below 1.27, off the highs. The pound is struggling after Chief EU Negotiator Barnier reported little progress in Brexit talks. Robust US jobs support the dollar.

GBP/USD News

XAU/USD retreats further to $1670, lowest in five weeks

Gold prices are falling sharply on Friday on the back of the US employment report that boosted equity markets and sent US yields to the upside. XAU/USD is losing more than $40 on Friday and recently bottomed at $1670/oz, the lowest intraday level since May 1.

Gold News

Institutional demand exceeds Bitcoins supply

Greyscale floods the market with fresh money to satisfy the demand of its clients. Investors, willing to pay a 29% surcharge for exposure to Bitcoin without suffering the legal and operational inconveniences. Market remains at risk on the verge of new bullish territory.

Read more

WTI rallies above $39 as focus shifts to OPEC+ meeting

Crude oil prices built on Thursday's modest gains and rose sharply on Friday boosted by the upbeat market mood optimism surrounding Saturday's OPEC+ meeting. 

Oil News

Forex MAJORS

Cryptocurrencies

Signatures